Large productivity gains from AI don't lead to equally big gains in software.
+40%/+140%/+180% commits from autocomplete/interactive/autonomous agents but only +50%/+30% projects/releases
And does this new software get used by consumers? Not really. It's invisible/irrelevant.
We develop and estimate a model of search with spatial learning. Consumers update on unsearched items that are close to searched items in characteristic space. This rationalizes path dependence in search data and allows platforms to manipulate search paths.https://t.co/BzYJQiTm1F
Today, @realDonaldTrump (@WhiteHouse) signed an executive order on drug pricing. Thank you to everyone who pointed out that @shoshievass, Pierre Dubois, and I looked at this sort of policy in our paper. A quick thread on the main results with some important nuance.
More sharply, AI is a near-perfect example of Weitzman's (1979) argument for when quantity controls or regulations are needed rather than pigouvian taxes or (exclusively) liability. @ESYudkowsky
Forthcoming at the Journal of Political Economy: We find that consumer product markups increased more than 25 percent from 2006 to 2019.
One contribution is an approach to estimate IO-style models at scale, yielding flexible consumer preferences and estimates of marginal costs.
Curious to see a comparison of this policy’s effects across industries with high/low levels of worker innovation. One expects that without non-competes competition for workers will increase driving the wages up. But I’m more interested in the following channel. 1/3
BREAKING: The FTC just banned non-compete agreements.
The Federal Trade Commission has issued a final rule making it illegal for bosses to make workers sign noncompetes in any scenario, and voiding nearly all existing noncompetes.
This is a game changer for American workers.
Imagine I’m a hedge fund trader. My salary is so high because there’s a chance I’ll come up with a strategy that makes a huge profit for the firm. Without non-compete, after I come up with such strategy, I can go to another place and implement that strategy, or smth similar. 2/3